Porch Group Primed To Take More Consumer Wallet Share, Says Bullish Benchmark

Porch Group Inc PRCH seems poised to capitalize on the rapidly growing home services software market, according to Benchmark.

The Porch Analyst: Daniel Kurnos initiated coverage of Porch with a Buy rating and $24 price target.

The Porch Thesis: Porch.com has a “software plus transaction revenue model in the home services space,” which makes it a B2B2C — business to business to consumer — company, Kurnos said in a Tuesday initiation note.

Porch owns software tools that are used by more than 10,000 companies, the analyst said. 

He named the following reasons for being bullish on Porch.com:

• Home service and sale related companies are expected to witness favorable macroenvironment conditions next summer
• The user base is “relatively sticky”
• Porch has already achieved a Net Promoter Score of 73
• The company aims to deploy a consumer app next year and may launch DTC services in the future
• Its hybrid model should increase “consumer wallet share over time, driving significant scale benefits”
• Porch targets several massive markets
• The valuation looks “relatively inexpensive”

PRCH Price Action: Shares of Porch Group were down 1.5% at $14.49 at last check Tuesday.